Cave Creek outlines steps to shore up water as CAP allocations could fall up to 35% by 2027

Cave Creek officials told residents that prolonged shortages in the Colorado River could force substantial reductions to the town's Central Arizona Project (CAP) water deliveries, and outlined investments and partnerships intended to protect service and supplement supplies.

The town presentation said an estimate used for planning anticipates a 25% to 35% reduction in Cave Creek's raw CAP allocation by 2027. Cave Creek relies on CAP for roughly 95% of its water; CAP water is delivered to the town's treatment plant through a 12.5-mile pipeline with four booster stations.

To reduce its vulnerability, town leaders described several measures already in place or under study. Cave Creek and the City of Phoenix partnered on the Phoenix Interconnect project, which the town said can supply up to 1,400,000 gallons per day of raw water, roughly half of the town's peak-day demand, and lets utilities perform maintenance on the CAP transmission line without disrupting service. The town has also completed a 1,000,000-gallon reservoir on Cave Creek Road to add storage capacity and provide a water resource for fighting wildfires.

In October 2024, the Salt River Project (SRP) approved Cave Creek as a nonvoting member of a Verde Reservoir sediment-mitigation project aimed at preserving reservoir capacity. As part of that effort, a federal study is evaluating whether Bartlett Dam can be enlarged to deliver additional water to SRP and CAP systems. The town said construction, if approved, is projected to be complete in 2033 and that Cave Creek would need to commit "millions of dollars" for its share of costs; the presentation did not specify a dollar amount.

Officials also outlined other supply options being considered, including using credits from unused CAP allocations that are stored underground and can be exchanged with other cities for delivery through the CAP canal.

Town staff acknowledged the cost of operating a small, largely CAP-dependent system. They said the town has subsidized operations in part, utility rates already cover much of system support, and rates are expected to rise because of higher CAP costs and expenses tied to acquiring additional resources.

Because some costs will likely be passed to customers, the town emphasized conservation as a near-term way for households to limit bill increases. Staff urged efficient landscaping, prompt leak repair, and reductions in irrigation and indoor use. To help customers track use and spot leaks, the town has rolled out the My360 online water-monitoring system, which allows residents to view usage from a phone or laptop.

The town presentation framed these measures as part of an on‑going effort: officials said they are working with state and regional partners, pursuing studies and project agreements, and will return with more detailed cost and financing information as plans progress. The presentation did not report any formal vote or council action during the briefing.

Actions and next steps described by the town include the Phoenix Interconnect partnership, completion of the 1,000,000-gallon reservoir, SRP nonvoting membership in the Verde project, and participation in the federal Bartlett Dam study. Town officials said they will evaluate funding needs if the Bartlett enlargement is approved and continue to pursue partnerships and conservation programs to reduce demand.